Natural justice in administrative refusals requires notice, hearing, and reasons before rejecting advance licence applications.

An administrative refusal affecting substantive rights must comply with natural justice, including prior notice, an opportunity of hearing, and a reasoned speaking decision. Here, refusal orders on advance licence applications were issued without a show cause notice or personal hearing and only stated that the petitioner was on the Denied Entity List, so they did not amount to a proper determination of the applications. The Bombay HC held that such non-speaking orders were liable to be quashed and the applications restored for fresh disposal in accordance with natural justice.

---

---

Issues: Whether the impugned refusal orders, passed without a show cause notice or personal hearing and containing only a brief reason, were liable to be quashed and the applications restored for fresh decision.

Analysis: The orders were passed without prior notice or hearing and merely recorded that the applications could not be considered because the petitioner was on the Denied Entity List. Such orders did not disclose a speaking determination on the applications. In proceedings under Article 226 of the Constitution of India, an administrative refusal affecting rights must conform to the principles of natural justice, including notice and an opportunity of hearing, and must be supported by reasons where a speaking order is required.

Conclusion: The impugned orders were quashed and set aside, and the applications for advance licence were restored for fresh disposal in accordance with the principles of natural justice.

Ratio Decidendi: An administrative order rejecting a substantive application without notice, hearing, or a reasoned determination is liable to be set aside and remanded for fresh decision in accordance with natural justice.

---